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Company name The J.M. Smucker Company
Stock ticker SJM
Live stock price [stckqut]SJM[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Fair
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $106.52
Target stock price (averages with growth) $118.91
Target stock price (averages with no growth) $98.4
Target stock price (manual assumptions) $102.79

The following company description is from Google Finance: https://www.google.com/finance?q=NYSE%3ASJM&sq=sjm&sp=2&ei=ilCfU6C2IsHGrQGL9IHoBQ

The J. M. Smucker Company operates principally in the manufacturing and marketing of branded food products. Majority of the Company’s sales are in the United States. The Company’s operations outside the United States are principally in Canada, although products are exported to other countries as well. The Company operates in three segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, and International, Foodservice and Natural Foods. In August 2013, the Company completed an acquisition of Enray Inc.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in The J.M. Smucker Company as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of The J.M. Smucker Company calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $105.83
  • Growth: 0.1
  • Current EPS (TTM): $5.41
  • P/E: 19
  • Future EPS Calc: $8.71
  • Future Stock Price Calc: $165.54
  • Target stock price: $102.79

I hope that this makes you a better investor. [/s2If]